Baxter Holmes, ESPN Senior Writer November 20, 2023, 4:54 p.m. ET
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- Baxter Holmes (@Baxter) is a senior writer for ESPN Digital and Print, focusing on the NBA. He has covered the Lakers and Celtics and previously worked for The Boston Globe and Los Angeles Times.
In a statement of claim filed Monday, the New York Knicks said they are seeking more than $10 million in damages from the Toronto Raptors in a lawsuit over the theft of thousands of confidential files, arguing that NBA commissioner Adam Silver is not acting as an arbitrator The dispute was due in part to his close relationship with Raptors governor Larry Tanenbaum.
The Knicks’ request, obtained by ESPN, came in response to the Raptors’ Oct. 16 request to dismiss the Knicks’ original complaint and let Silver arbitrate the dispute.
In Monday’s filing, the Knicks also argued that Tanenbaum’s position as chairman of the NBA’s Board of Governors would create a conflict of interest because “Tanenbaum serves as Silver’s boss and exercises control over and has significant influence over Silver’s continued employment and salary.” In addition, the Knicks pointed to a friendship between Silver and Tanenbaum.
“Among other things, Tanenbaum was described as a ‘close ally of Commissioner Adam Silver,'” the Knicks wrote. “Silver himself described Tanenbaum as ‘not only my boss as chairman of the Board of Governors, but he is also a role model in my life.'” If Silver were to preside over the current dispute, he would be settling a case for his boss and ally.
The Raptors declined to comment.
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Monday’s filing was the Knicks’ first instance of potential financial damages since they filed their first lawsuit in U.S. District Court in Manhattan in August.
That complaint accused former Knicks employee Ikechukwu Azotam, who worked for the Knicks from 2020 to 2023, of sending the Raptors thousands of confidential files – including game frequency reports, a 2022-23 season prep book, video scouting files and opposition research and more – after the team began recruiting him to join their organization in the summer of 2023.
The Knicks also accused Azotam – who worked for the Knicks as an assistant video coordinator and then as director of video/analytics/player development assistant – of violating a confidentiality clause in an employment contract and claimed that members of the Raptors gave “direction” to Azotam’s actions and/or knowingly benefited from Azotam’s unlawful actions.
Additionally, the Knicks alleged that the Raptors “conspired to use Azotam’s position as a current Knicks insider to pass proprietary information to the Raptors to help them organize, plan and structure their new coaching and video operations staff.” , the lawsuit says.
Raptors coach Darko Rajaković, player development coach Noah Lewis and 10 “unknown” Raptors employees were also named as defendants in the Knicks’ lawsuit.
During Raptors Media Day on October 2, Raptors President Masai Ujiri commented on the lawsuit, saying: “One time a team sued a team in the NBA. Once. Just imagine.”
In an Oct. 16 filing, the Raptors called the Knicks’ lawsuit “baseless” and a “public relations stunt,” while also calling on Silver to mediate the dispute. The Raptors have made this request several times since August.
In fact, about a week after the Knicks filed the initial complaint, the Raptors sent an email to NBA general counsel Rick Buchanan requesting that Silver assert jurisdiction over the dispute between the teams under Statute “d” in Article 24 of the To enforce NBA statutes. This bylaw states: “The Commissioner shall have exclusive, complete, complete and final jurisdiction over all disputes involving two (2) or more members of the Association.”
But the Knicks objected – at the time and even more forcefully in Monday’s filing – to Silver ruling on the dispute. In a Sept. 9 email to both teams’ legal counsel, Buchanan said the league would pursue further proceedings in the Southern District Court in Manhattan “to determine whether this dispute should be resolved in federal court or before it.” .” [Silver].”
In another email dated Sept. 19, Buchanan reiterated the league’s stance toward both teams’ legal representatives.
In their motion filed Monday opposing arbitration by Silver on the matter, the Knicks said there are no provisions in the NBA constitution governing the theft of intellectual property or the protection of a team’s intellectual property .
“Contrary to defendants’ allegations, this is not a dispute over basketball operations,” the Knicks wrote. “There is no connection between the claims and the NBA Constitution – this is a dispute over the theft of trade secrets by a disloyal employee, a scenario not contemplated by the NBA Constitution. Trade secret misappropriation, breach of contract and tort claims are the types of matters that routinely come up before federal judges. We are not aware that the NBA commissioner has ever dealt with anything similar. As far as the conclusion of the contract is concerned, the arbitration clause cannot be applied to the plaintiff’s claims.”
The Knicks pointed to the limits of Silver’s power to fine under Article 24 of the NBA Constitution, which says the commissioner may not impose a fine of more than $10 million. Additionally, the Knicks pointed out that the league’s bylaws do not authorize Silver to collect legal fees in disputes between two teams.
“As the Knicks intend to demonstrate in court, the damages exceed $10 million,” the Knicks said in Monday’s filing, adding that they also intend to seek attorney’s fees.
An MSG spokesperson issued the following statement to ESPN on Monday: “We have been the victims of a theft of protected and confidential files, which is a clear violation of criminal and civil law, and we remain confident that the court will rule in our favor.” “this thing.”